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By McDowell Graves, Joseph Jensen, W. D. Goold, M. L. Gwin

During the present year the Santa Fe Springs field has proved to be the most important oil field under development in the United States. Its production will exceed that of any other field. Without it, production within the United States would have been almost in even balance with consumption. The field has forced to the fore and compelled, more than any other single factor, serious consideration of the need of conserving the gas resources of the State of California. It has also contributed much to the development of new drilling equipment and important features in petroleum engineering, and has required the development of a new cement for use in deep wells because of high temperatures. It is the only oil field in the country where wells 8000 ft. deep have become so common that they are no longer given special attention. The field covers a little less than 1400 acres of land. In it 196 producing deep-zone wells have already been drilled since August, 1928, and 224 wells are still drilling. More wells may be drilled. This indicates that probably more than 450 wells will be drilled in the present campaign. In hardly a year's time it has caused the outlay of nearly $50,000,000 for drilling, and within the year 1929 it will have returned practically an equal amount of revenue. In contrast to conditions during 1923, when this field was once before an important and disturbing factor, the California oil industry has not been forced to refinance to meet the situation presented by such a large production of oil. There has been practically no unit selling and no stock selling, nor any unnecessary development far beyond the limits of the field. Production is now about 275,000 bbl. per day and gives every promisc of remaining at this figure or increasing to nearly 300,000 bbl. Six months from now the field should still be capable of producing more than 200,000 bbl. per day. Obviously, the need for conserving gas that would be blown to the air, incident to the production of so large a volume of oil, represents a problem in conservation deserving of the most serious attention of the oil industry and of the State of California.

Jan 1, 1930

By Paul M. Tyler

Fully a decade ago, demand for ground mica began to exceed supplies of scrap mica from manufacturing operations and of waste block from feldspar and sheet mica mining in the United States, with the result that in recent years the market has absorbed larger and larger quantities of mica recovered as a by-product from clay washing,1 as a joint product with kyanite12 and by grinding schists. So far, only schists that contain a large percentage of mica have been utilized for making ground mica, but already there has been a good deal of wishful thinking with regard to recovering mica as an aid to the prospective working of low-grade gold ores and ores of certain base metals. With wet-ground mica selling at $60 to $100 a ton and even dry-ground mica worth over $20 a ton, many ores that could not be considered as otherwise workable under present conditions will show commercial possibilities if they can be made to yield even a relatively small percentage of salable mica. An interesting paper might be written on the coming role of industrial minerals as joint products of metal mines. It is largely a matter of markets. Many years ago I watched the mess left behind the gold dredges in the mountains of Colorado and thought of the Denver sand and gravel operators who prided themselves upon their canniness in providing devices for catching gold merely as an incident to their regular business of selling what we miners classed as "tailings." Nowadays almost every milling or mining operation near settled communities finds use for at least part of its waste for road material or concrete aggregate and several eastern iron mines have gone into the crushed-stone business. Promoters now mention fertilizer "filler" as potentially salable at all the way from $1 to $10 a ton, or whatever is needed to cover costs of mining and treating the "ore" and leave the metal values as "clear profit." In emulating the pork packers in their efforts to utilize "everything but the squeal," mining engineers may go too far; on the other hand, they should not let

Jan 1, 1942

By Paul Tyler

FULLY a decade ago, demand for ground mica began to exceed supplies of scrap mica from manufacturing operations and of waste block from feldspar and sheet mica mining in the United States, with the result that in recent years the market has absorbed larger and larger quantities of mica recovered as a by-product from clay washing,1 as a joint product with kyanite,2 and by grinding schists. So far, only schists that contain a large percentage of mica have been utilized for making ground mica, but already there has been a good deal of wishful thinking with regard to recovering mica as an aid to the prospective working of low-grade gold ores and ores of certain base metals. With wet-ground mica selling at $60 to $100 a ton and even dry-ground mica worth over $20 a ton, many ores that could not be considered as otherwise workable under present conditions will show commercial possibilities if they can be made to yield even a relatively small percentage of salable mica. An interesting paper might be written on the coming role of industrial minerals as joint products of metal mines, It is largely a matter of mar-kets. Many years ago I watched the mess left behind the gold dredges in the mountains of Colorado and thought of the Denver sand and gravel operators who prided themselves upon their canniness in providing devices for catching gold merely as an incident to their regular business of selling what we miners classed as "tailings." Nowadays almost every milling or mining operation near settled communities finds use for at least part of its waste for road material or concrete aggregate and several eastern iron mines have gone into the crushed-stone business. Promoters now mention fertilizer "filler" as potentially salable at all the way from $1 to $10 a ton, or whatever is needed to cover costs of mining and treating the "ore" and leave the metal values as "clear profit." In emulating the pork packers in their efforts to utilize "everything but the squeal,"

Jan 1, 1938

By Paul M. Tyler

Fully a decade ago, demand for ground mica began to exceed supplies of scrap mica from manufacturing operations and of waste block from feldspar and sheet mica mining in the United States, with the result that in recent years the market has absorbed larger and larger quantities of mica recovered as a by-product from clay washing,1 as a joint product with kyanite12 and by grinding schists. So far, only schists that contain a large percentage of mica have been utilized for making ground mica, but already there has been a good deal of wishful thinking with regard to recovering mica as an aid to the prospective working of low-grade gold ores and ores of certain base metals. With wet-ground mica selling at $60 to $100 a ton and even dry-ground mica worth over $20 a ton, many ores that could not be considered as otherwise workable under present conditions will show commercial possibilities if they can be made to yield even a relatively small percentage of salable mica. An interesting paper might be written on the coming role of industrial minerals as joint products of metal mines. It is largely a matter of markets. Many years ago I watched the mess left behind the gold dredges in the mountains of Colorado and thought of the Denver sand and gravel operators who prided themselves upon their canniness in providing devices for catching gold merely as an incident to their regular business of selling what we miners classed as "tailings." Nowadays almost every milling or mining operation near settled communities finds use for at least part of its waste for road material or concrete aggregate and several eastern iron mines have gone into the crushed-stone business. Promoters now mention fertilizer "filler" as potentially salable at all the way from $1 to $10 a ton, or whatever is needed to cover costs of mining and treating the "ore" and leave the metal values as "clear profit." In emulating the pork packers in their efforts to utilize "everything but the squeal," mining engineers may go too far; on the other hand, they should not let

Jan 1, 1942

By J. E. Jopling, J. R. Chenneour, E. L. Derby, S. R. Elliott

The Marquette range, on which are situated the iron mines of Mar-quette County, together with a few in Baraga County, Mich., extends from a point 10 miles southwest of Marquette westward for 30 miles. The tracts are usually a multiple of the standard 40-acre parcel, which is the smallest government subdivision of a square mile or section. About half of the mines are held in fee, these being owned by the older mining companies. Some of them date back to about 1880, and a few are as early as 1850. During the past 40 years most of the mines opened have been on leased lands, the royalty being either for a stated amount per ton or a percentage of the selling price of the ore at the lower lake ports, or the selling price on board of cars at the mine. The first merchantable body of ore discovered in the Lake Superior district was found, in 1845, at what is known as the Jackson mine, near Negaunee. This ore was hard hematite. After unprofitable attempts had been made, in 1848, to smelt it in forges, shipments were begun to lower lake ports, which increased rapidly upon the completion of the locks at Sault Ste. Marie, in 1855, and the railroad from the mines to Marquette, in 1857. Beginning with the Pioneer, in 1858, a number of small charcoal furnaces were built to smelt a part of the product. At various points in the upper and lower peninsulas, large charcoal furnaces are still making iron from the ores of the Marquette range. In connection with these furnaces are byproduct plants. As the deposits were opened up, soft ore was encountered, but for a few years this was disregaided, as only the hard ore was used. Underground mining was begun about 1880 and during the next few years the open-pit mines producing high-grade ore were exhausted. The first mines in the district were owned by the Jackson, Cleveland, Lake Superior, Lake Angeline, Champion, Iron Cliffs, Humboldt, Republic, and Michigamme companies. Many of these companies have been merged in the holdings of The Cleveland-Cliffs Iron Co., which controls most of the tonnage of the district.

Jan 1, 1925

By Paul M. Tyler

FULLY a decade ago, demand for ground mica began to exceed supplies of scrap mica from manufacturing operations and of waste block from feldspar and sheet mica mining in the United States, with the result that in recent years the market has absorbed larger and larger quantities of mica recovered as a by-product from clay washing,1 as a joint product with kyanite12 and by grinding schists. So far, only schists that contain a large percentage of mica have been utilized for making ground mica, but already there has been a good deal of wishful thinking with regard to recovering mica as an aid to the prospective working of low-grade gold ores and ores of certain base metals. With wet-ground mica selling at $60 to $100 a ton and even dry-ground mica worth over $20 a ton, many ores that could not be considered as otherwise workable under present conditions will show commercial possibilities if they can be made to yield even a relatively small percentage of salable mica. An interesting paper might be written on the coming role of industrial minerals as joint products of metal mines. It is largely a matter of markets. Many years ago I watched the mess left behind the gold dredges in the mountains of Colorado and thought of the Denver sand and gravel operators who prided themselves upon their canniness in providing devices for catching gold merely as an incident to their regular business of selling what we miners classed as "tailings." Nowadays almost every milling or mining operation near settled communities finds use for at least part of its waste for road material or concrete aggregate and several eastern iron mines have gone into the crushed-stone business. Promoters now mention fertilizer "filler" as potentially salable at all the way from $1 to $10 a ton, or whatever is needed to cover costs of mining and treating the "ore" and leave the metal values as "clear profit." In emulating the pork packers in their efforts to utilize "everything but the squeal,"

Jan 1, 1938

HenRy Clay FRick, a pioneer in modern coke and steel industry and, in more recent years, one of the outstanding financiers of America, died on Dec. 2, 1919, at his home on Fifth Avenue, New York. Although he had been ill since election day, when he had an attack of indigestion which developed into ptomaine poisoning, his death was a surprise to all. He is survived by his widow, Adelaide Howard Childs Frick; a son, Childs Frick, one unmarried daughter, Helen C. Frick, and four grandchildren. A quiet funeral service was conducted at the Frick home on Wednesday afternoon by the Rev. Dr. Leighton Parks, pastor of St. Bartholomew's Episcopal Church. This was attended by members and very intimate friends of the family, Trustees of the Metropolitan Museum of Art, Officers of the Links Club, and Directors of the United States Steel Corpn. Henry Clay Frick was born Dec. 19, 1849, in West Overland, Westmoreland Co., Pa. His father, John W. Frick, was a farmer of Swiss ancestG, and his mother, Elizabeth Overholt Frick, a member of an old Mennonite family. Until he was sixteen, he spent his time at school, on his father's farm, and in his grandfather's distillery, where he kept books. He attended Otterbein University, in Ohio, for a year. Frick, learning that coke was an essential of the already rapidly developing steel business, early invested every cent he could get in coking-coal lands. With the help of an associate of his grandfather, he formed the corporation of Frick & Co., coke dealers, and acquired fifty-one ovens in the Connellsville region and 300 acres of soft-coal lands. During the panic of '73, with the help of Judge Thomas Mellon, a Pittsburgh 'banker, he bought out his partners and while coke was selling at 90 cents a ton enlarged his purchases of suitable lands. Later, the price of coke increased until it was selling at $5 a ton. Before he was 30 years old, Frick was rated a millionaire. Association with CaRnegie In 1878, he sold an interest in the business Do E. M. Ferguson of New York, and later a share to Mr. Ferguson's brother. Four years later the business was reorganized into the H. C. Frick Coke Co. with vast coal lands, great banks of ovens, and a capitalization of $2,000,000. Then began his association with Andrew Carnegie. He exchanged a part of his coke interest for shares in Carnegie Brothers of Pittsburgh,

Jan 1, 1920

By Robert M. Dreyer

Diamond is the hardest known material. The diamond industry is separated into two major segments: (1) industrial and (2) gem. The major industrial use of diamonds is as a high-grade abrasive in a wide variety of applications for which no effective low-cost substitute is available. Table 15.4C.1 gives data on diamond production and on United States diamond imports. In both gem and industrial diamond production, but especially in the case of gems, the quantity of stones produced is not directly correlated to value, for the determination of value is markedly affected by quality. South Africa long has been the world leader in gem diamond production with an estimated production in 1968 (including South-West Africa) of about 4 million carats, equal to 43% of world production. During the past decade there has been a marked rise in gem diamond production in the USSR, so that nation is now the second-ranking world producer, with Angola (Portuguese West Africa) third. In natural industrial diamonds, the major production comes from Congo-Kinshasa (former Belgian Congo) which had a production of 15 million carats in 1968, equal to 47% of world production. In the past six years, there has been a remarkable increase of industrial diamond production in the USSR, which now ranks second with a production of 6 million carats, equal to about one-fifth of world production. South Africa now ranks third followed by Congo-Brazzaville and Ghana. No natural diamonds are produced in the United States. Since the discovery of an economical method for synthesizing small diamonds, there has been a rapid increase in synthetic production from 4 million carats in 1962 (1 carat equals 200 mg) to 11.5 million carats in 1968. Table 15.4C.1 gives the gradually increasing imports of industrial diamonds and indicates a relatively stable price. In 1968, the imports of industrial diamonds were 13.5 million carats with a value of $59.2 million. Table 15.4C.2 shows the rapidly increasing imports of cut and uncut gem diamonds into the United States. In 1968 the United States imported 2.5 million carats of uncut stones with a value of $166 million and 1.5 million carats of cut stones with a value of $175 million. Diamond marketing is dominated by DeBeers Consolidated Mines, Ltd., which, through subsidiaries, controls many of the major African diamond deposits. More important economically, however, through its Central Selling Organization, DeBeers markets 86% of the non-Communist world's natural diamonds, including most of those derived from deposits outside of corporate control. In 1967 the mines owned by DeBeers produced nearly 8 million carats, and the Central Selling Organization sold over $600 million in gem and industrial diamonds. The dominance of diamond sales by

Jan 1, 1976

By Chester A. Fulton

In Polk County, Florida, the mining of raw phosphates began some 50 years ago with dredging operations on the Peace River, and in other near-by places by removal of shallow overburden with negroes and wheelbarrows, or with mules and scrapers, and the excavation and screening of deposits found close to the surface. There were many individual operations of comparatively short life. Later steam shovels removed the overburden, and still later hydraulic methods were substituted for the steam shovel. Within the last 10 years large electrically operated draglines have almost entirely replaced hydraulic mining for overburden removal. The matrix is still mined by hydraulic giants and pumped to the washer or recovery plant. The many small operations have long since disappeared and the most desirable phosphate lands have gradually been acquired through purchase or merger by the seven companies that are operating in the field today. These companies are producing and selling about 2,000,000 long tons of phosphate per annum, or about two-thirds of what the industry likes to think is the normal output, with 1929 and 1930 in mind. To produce these 2,000,000 long tons of raw phosphate, they mine and treat about 1,000,000 tons of tailings from older and less efficient operations, about 11,000,000 tons of matrix, and remove from above this matrix some 22,000,000 tons of overburden. The mining practice that has made possible the excavation and handling of 34 million tons of material to win but 2 million tons of merchantable product, selling for probably an average of only $4 per long ton when dried, should be of interest to the mining profession, though little has been written of it. The Florida Pebble Field, as it has come to be known, comprises an area (Fig. 1) within a radius of about 18 to 20 miles centering around Mulberry in Polk County, a small town 30 miles east of Tampa, Florida's largest port on the Gulf coast. The geology1 of these phosphate pebble deposits may be described briefly. A fairly pure limestone was altered to a secondary apatite.

Jan 1, 1938

By Chester A. Fulton

In Polk County, Florida, the mining of raw phosphates began some 50 years ago with dredging operations on the Peace River, and in other near-by places by removal of shallow overburden with negroes and wheelbarrows, or with mules and scrapers, and the excavation and screening of deposits found close to the surface. There were many individual operations of comparatively short life. Later steam shovels removed the overburden, and still later hydraulic methods were substituted for the steam shovel. Within the last 10 years large electrically operated draglines have almost entirely replaced hydraulic mining for overburden removal. The matrix is still mined by hydraulic giants and pumped to the washer or recovery plant. The many small operations have long since disappeared and the most desirable phosphate lands have gradually been acquired through purchase or merger by the seven companies that are operating in the field today. These companies are producing and selling about 2,000,000 long tons of phosphate per annum, or about two-thirds of what the industry likes to think is the normal output, with 1929 and 1930 in mind. To produce these 2,000,000 long tons of raw phosphate, they mine and treat about 1,000,000 tons of tailings from older and less efficient operations, about 11,000,000 tons of matrix, and remove from above this matrix some 22,000,000 tons of overburden. The mining practice that has made possible the excavation and handling of 34 million tons of material to win but 2 million tons of merchantable product, selling for probably an average of only $4 per long ton when dried, should be of interest to the mining profession, though little has been written of it. The Florida Pebble Field, as it has come to be known, comprises an area (Fig. 1) within a radius of about 18 to 20 miles centering around Mulberry in Polk County, a small town 30 miles east of Tampa, Florida's largest port on the Gulf coast. The geology1 of these phosphate pebble deposits may be described briefly. A fairly pure limestone was altered to a secondary apatite.

Jan 1, 1938

By Arthur Mackwell

The role of the precious metals is changing rapidly. They are becoming primarily materials of modern industry, and their decorative and monetary functions are diminishing in relative importance. Certainly gold is still the premier metal for jewelry, as silver is for silverware. But these uses are not growing nearly so fast as are the uses of these metals in a variety of industries. This is even more true of the platinum metals. Moreover, this is true despite the fact that the precious metals are highly expensive and liable to substitution by the base metals in cases where this is feasible. For the fact is that the physical and chemical properties of the precious metals make them relatively invulnerable to substitution; where they can be replaced by the base metals, they have been, and the opportunity for further substitution is, therefore, limited. SILVER In November 1969 the United States Treasury stopped minting the only remaining coin with any silver content. That was the silver-clad Kennedy half dollar, which had a silver content of approximately 40%. The step was taken out of necessity, because of the rising shortfall between world mine production and consumption. It was important to divert the 35 to 40 million oz of silver per year used for the minting of this coin into the open market, where it would be available for industrial consumption. This decision was important, not only for its practical effect but also for what it symbolized. Only four years earlier, in 1965, the Treasury had used 320 million oz of silver" for the full range of coinage. Now not an ounce of silver goes into the United States coinage. The reason is simple and yet complicated. For many years the U.S. Treasury had purchased silver at prices which provided a subsidy to domestic producers. As a result, silver producers were eager to sell to the Treasury, and that agency built up a huge supply of the metal -almost 2 billion oz by- 1961. But, as the free-market price neared $1.29, the basic melt value of the coinage, the Treasury became a seller of silver, not a buyer, and its stock was depleted rapidly. The Treasury lost more :than a billion ounces of silver in the years 1962 through 1965, and it continued to lose silver, both through coinage and through sales to consumers, through 1969. The Government continued to sell silver to consumers at the rate of 1.5 million oz a week, even after terminating the 40% silver Kennedy half dollar. But it was apparent that the Government stocks could last no more

Jan 1, 1976

By Corliss R. Kinney

SINCE the first atomic bomb exploded over Japan, a great deal of speculation has been published about the use of atomic energy instead of coal for the production of power. Atomic energy, in time, may displace coal for this purpose, but atomic energy will not displace coal in supplying chemical raw materials to the rapidly expanding carbon-chemicals market. Modern civilization demands large quantities of carbon compounds and the logical source of many of these is coal. Consequently, many progressive operators are considering the possibilities of the utilization of coal as a chemical raw material as never before. Furthermore, the demand for clean, smokeless, and ashless fuels will continue to increase and the only way to handle coal under those conditions is to take it apart, just as crude petroleum is taken apart. One can readily imagine where the petroleum industry would be now if it had insisted on selling customers only crude oil, perhaps emulsified with a little salt water to correspond to the moisture and mineral matter in raw coal. The time seems to be coming at an accelerated pace when mine operators will find that competing for a highly selective fuel market by producing a larger tonnage at smaller cost will be less profitable than to increase the value of a smaller tonnage many fold by producing something more valuable to industry and civilization than raw coal. For example, about 750,000 tons of carbon black selling for $50 to $60 per ton was produced in the United States in 1945. This tonnage is insignificant compared with the total production of coal in the United States, but a very tidy tonnage, together with the coal necessary to operate the process, for any mine operator fortunate enough to obtain a method of producing a better carbon black from coal. From the point of view of tonnage, the manufacture of coke of various kinds and its by-products is at present the most important source of carbon chemicals from coal. Nearly 20 per cent of the coal mined in this country is used for this purpose. A large proportion of the coke is used for the production of iron and steel, but even in this operation a considerable part of the coke is used for a chemical purpose; that is, the reduction of the ore to metallic iron. In addition, large quantities of coke are used in manufacturing many important products that find their way into the market. POSSIBILITIES OF ACETYLENE One of the important chemicals manufactured from coke is calcium carbide, from which many products are made. One of these is acetylene. This hydrocarbon can also be manufactured from natural gas or from waste oil-refinery gas and' these industries will probably offer competition for the manufacture of acetylene. Coke-oven gas can be used for making acetylene and should receive consideration

Jan 1, 1946

By Craig E. Saporito

INTRODUCTION Freeport-McMoRan Inc. has been very active recently with two major discoveries and its restructuring activities. This paper describes Freeport-McMoRan's businesses, the two major mineral discoveries, and exciting opportunities within the oil and gas operations. BUSINESS ACTIVITIES Freeport-McMoRan is the largest and one of the lowest cost fully integrated U.S. phosphate fertilizer producers. It is the second largest domestic Frasch sulphur producer. Freeport- McMoRan will become the largest domestic producer of Frasch sulphur when its Main Pass Block 299 sulphur deposit reaches full production in 1993. Furthermore, it is the largest transporter of sulphur produced by others. Its oil and gas activities rank among the largest U.S. independents in terms of production and proved reserves. The copper/gold operations in Indonesia are among the world's lowest cost. When expansion operations reach full capacity levels in 1992, the Indonesian copper/gold complex will be the fifth largest copper operation in the world. Operations are divided into three business segments that include: 1. Agricultural minerals, incorporating sulphur, phosphate rock and phosphate fertilizer activities; 2. Energy, including oil and gas activities; and 3. Metals, incorporating copper, gold and silver operations in Indonesia. In early 1989, Freeport-McMoRan announced the discovery of two world-class ore bodies; a sulphur deposit off the coast of Louisiana on Main Pass Block 299, and a copper/gold deposit -- the Grasberg in Indonesia -- approximately two miles away from the existing Ertsberg East operations. As a result of these major discoveries, Freeport- McMoRan decided to carry out a restructuring program. Its purpose was to sell $1.2 to $1.5 billion of non-strategic assets. Debt levels and associated interest expenses will be significantly reduced, and general and administrative expenses will be reduced, which will place Freeport- McMoRan in an excellent position to fund the development of the Main Pass Block 299 sulphur discovery, the Grasberg discovery, and oil and gas discoveries. This restructuring program also will allow Freeport-McMoRan to achieve the greatest future value for shareholders by focusing on its principal businesses (Figure 1). Strategic Restructuring • Sell $1.2 - $1.5 Billion Of Non-Strategic Assets • Significantly Reduce Debt • Significantly Reduce G&A • Fund Development Of Main Pass & Grasberg • Stronger Company; Positioned For Future Growth • Focus Is On Principal Businesses: - Sulphur/Phosphate Fertilizers - Indonesian Copper/Gold - Oil And Natural Gas Figure 1 - Strategic Restructuring AGRICULTURAL MINERALS Main Pass Block 299 Discovery The Main Pass Block 299 discovery has a proven reserve of 67 million long tons of recoverable sulphur. This is the largest known Frasch sulphur deposit in North America. The discovery increased Freeport-McMoRan's sulphur reserves more than five-fold, and is synergistic with the company's phosphate fertilizer assets. The

Jan 1, 1990

By Corliss R. Kinney

Since the first atomic bomb exploded over Japan, a great deal of speculation has been published about the use of atomic energy instead of coal for the production of power. Atomic energy, in time, may displace coal for this purpose, but atomic energy will not displace coal in supplying chemical raw materials to the rapidly expanding carbon-chemicals market. Modern civilization demands large quantities of carbon compounds and the logical source of many of these is coal. Consequently, many progressive operators are considering the possibilities of the utilization of coal as a chemical raw material as never before. Furthermore, the demand for clean, smokeless, and ashless fuels will continue to increase and the only way to handle coal under those conditions is to take it apart, just as crude petroleum is taken apart. One can readily imagine where the petroleum industry would be now if it had insisted on selling customers only crude oil, perhaps emulsified with a little salt water to correspond to the moisture and mineral matter in raw coal. The time seems to be coming at an accelerated Dace when mine operators will find that competing for a highly selective fuel market by producing a larger tonnage at smaller cost will be less profitable than to increase the value of a smaller tonnage many fold by producing something more valuable to industry and civilization than raw coal. For example, about 750,000 tons of carbon black selling for $50 to $60 per ton was produced in the United States in 1945. This tonnage is insignificant compared with the total production of coal in the United States, but a very tidy tonnage, together with the coal necessary to operate the process, for any mine operator fortunate enough to obtain a method of producing a better carbon black from coal. From the point of view of tonnage, the manufacture of coke of various kinds and its by-products is at present the most important source of carbon chemicals from coal. Nearly 20 per cent of the coal mined in this country is used for this purpose. A large proportion of the coke is used for the production of iron and steel, but even in this operation a considerable part of the coke is used for a chemical purpose; that is, the reduction of the ore to metallic iron. In addition, large quantities of coke are used in manufacturing many important products that find their way into the market. Possibilities of Acetylene One of the important chemicals manufactured from coke is calcium carbide, from which many products are made. One of these is acetylene. This hydrocarbon can also be manufactured from natural gas or from waste oil-refinery gas and these industries will probably offer competition for the manufacture of acetylene. Coke-oven gas can be used for making acetylene and should receive consideration

Jan 1, 1947

By Corliss R. Kinney

Since the first atomic bomb exploded over Japan, a great deal of speculation has been published about the use of atomic energy instead of coal for the production of power. Atomic energy, in time, may displace coal for this purpose, but atomic energy will not displace coal in supplying chemical raw materials to the rapidly expanding carbon-chemicals market. Modern civilization demands large quantities of carbon compounds and the logical source of many of these is coal. Consequently, many progressive operators are considering the possibilities of the utilization of coal as a chemical raw material as never before. Furthermore, the demand for clean, smokeless, and ashless fuels will continue to increase and the only way to handle coal under those conditions is to take it apart, just as crude petroleum is taken apart. One can readily imagine where the petroleum industry would be now if it had insisted on selling customers only crude oil, perhaps emulsified with a little salt water to correspond to the moisture and mineral matter in raw coal. The time seems to be coming at an accelerated Dace when mine operators will find that competing for a highly selective fuel market by producing a larger tonnage at smaller cost will be less profitable than to increase the value of a smaller tonnage many fold by producing something more valuable to industry and civilization than raw coal. For example, about 750,000 tons of carbon black selling for $50 to $60 per ton was produced in the United States in 1945. This tonnage is insignificant compared with the total production of coal in the United States, but a very tidy tonnage, together with the coal necessary to operate the process, for any mine operator fortunate enough to obtain a method of producing a better carbon black from coal. From the point of view of tonnage, the manufacture of coke of various kinds and its by-products is at present the most important source of carbon chemicals from coal. Nearly 20 per cent of the coal mined in this country is used for this purpose. A large proportion of the coke is used for the production of iron and steel, but even in this operation a considerable part of the coke is used for a chemical purpose; that is, the reduction of the ore to metallic iron. In addition, large quantities of coke are used in manufacturing many important products that find their way into the market. Possibilities of Acetylene One of the important chemicals manufactured from coke is calcium carbide, from which many products are made. One of these is acetylene. This hydrocarbon can also be manufactured from natural gas or from waste oil-refinery gas and these industries will probably offer competition for the manufacture of acetylene. Coke-oven gas can be used for making acetylene and should receive consideration

Jan 1, 1947

By Charles Jones

Discussion of the paper of CHARLES COLCOCK JONES, presented at the San Francisco meeting, September, 1915, and printed in Bulletin No. 105, September, 1915, pp. 1887 to 1898. D. A. LYON, Salt Lake City, Utah.-For some years I have been interested in the iron-ore deposits of the Pacific Coast, and I feel very much indebted to Mr. Jones for the information he has given us on this subject. I think that we are also very much indebted to him for having presented this paper, as he has given us reliable data in shape of facts and figures, which is just what we need in considering whether or not it would be commercially feasible to attempt to establish an iron and steel industry on the Pacific Coast. Personally, due to lack of market, I do not think it is a commercially feasible proposition at the present time. Mr. Jones states that pig iron can be produced on this coast as cheaply as it can be produced in Pittsburgh. Even. so, what can be done, with it after it is produced? To begin with, iron produced on the. Pacific Coast has to compete with iron produced in China. Last year I had occasion to investigate the subject of the market for iron and, steel on the Pacific slope, and found that it was possible for the producers of Chinese iron to sell it for much less than the price for which iron can be produced in the West, and also for less than eastern pig iron is now sold for, even when shipped through the Panama Canal. I was informed that the agents for Chinese iron had instructions to sell it for $1 or $2 less per ton than that asked for other irons on the market. Of course, I realize that the competition of Chinese iron may not be important, but even if it is not, and even though pig iron ,can be produced at the cost given by Mr. Jones in his paper, I do not see any immediate chance of its being so produced, due to lack of market. C. C. JONES, Los Angeles, Cal.-Mr. Lyon is right. It is a fact that Chinese pig is being sold in San Francisco on some large contracts at $18.50 a ton, while $19 is the usual price. We ought to produce iron. on this coast at $14. Personally I do not think Chinese iron is ever going to be an important factor. It is a bugbear out here now. You are not going to have much Chinese pig iron in .this country. Our little friend Japan is going to absorb everything it can. The price of Chinese pig iron at $18 is about as low as it will ever get. If we can show you that we can produce this iron here at the same price as at Pittsburgh, I. think you will have a good opportunity to compete with anything China or India can ever do. Costs there are very low now. They are going to come up by leaps and bounds in the next few years. The labor cost over there may be very low now, but I. have seen some men from there quite recently

Jan 12, 1915

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By T. A. Rickard

The writing that is effective is woven with a fine texture into an agreeable pattern; it is free from knots, loose threads, and stray fluff. The instrument that weaves this literary fabric, whether it produce a homely sock or a lordly tapestry, a simple story or a learned 'Itreatise, is a disciplined intelligence, as sure as a steel needle, as precise as a swift loom. The simile breaks down at this point, for the product of the pen is instinct with the human spirit and therefore transcends in beauty anything made by a mere machine. If words are to be woven into eloquent meaning, they must be well knit. Upon the relation of words to each other and of groups of words to other groups, known as phrases, clauses, and sentences, depends the success of writing as a means of trans¬mitting thought from man' to man. To be understood beyond question, you should know not only what your words denote but how to build your sentences; you must not only choose your words aright but construct your sentences properly. A sentence is a combination of words that makes complete sense; it says something about something. ' A clause is a subordinate sentence or a sentence within a sentence. A phrase is a group of words without a predicate; it makes sense, but not complete sense. For example: I shall wait for a few minutes before I go home: The whole statement is a sentence; "I shall wait" and "before I go home" are clauses; "for a few minutes" is an adverbial phrase. The orderly arranging of words and of combinations of words is called `syntax'; and from the original Greek form, ouvaeis (suntaxis), is derived the Greek name for an editor,

Jan 1, 1931

By William J. Potter, Roger N. Pyle

Introduction The primary ingredient for survival of mining companies during a recessionary period is to be innovative and resourceful in the structuring and financing of operations. Over the past decade, many mining companies have had to retrench and restructure their operations and to redeploy their assets just to survive. During the same period, traditional sources of financing for mining companies -- commercial banks, subsidized export credit loans and long term straight debt financing in the public markets -- became less available and more expensive. Meanwhile, new markets and new financing instruments provided new alternatives for mining companies. Those companies which exploited these alternatives greatly enhanced their capacity for survival and even for profitability. This article considers the strategies adopted by some companies to adapt to changes in this recessionary environment; the inadequacy of traditional sources of financing; certain of the new financing instruments, structures and markets which have become available; and how several mining companies have utilized these new instruments, structures and financial markets to improve their competitive positions. THE IMPACT OF RECESSION ON MINING COMPANIES AND TRADITIONAL FINANCING SOURCES In its 1983 year-end article "The New Economic Order" Mining Journal characterized many of the large private sector mining companies with operations in the industrialized countries as being "gripped between the jaws of high working costs and stagnating metal commodity prices." The article went on to characterize the Canadian mining industry in particular as being "in the difficult position of having to seek to sell the bulk of its output in a world market characterized by over-capacity, where production costs were determined by internal political and economic factors while prices were set by external competitive forces of supply and demand." Miners of a wide range of commodities in the industrialized countries have come to realize that their domestic mineral resources are in many cases no longer competitive with global sources of supply. To compete and survive they would have to rely on their technical and financial expertise in mineral exploration and development and in mining and processing. Strategies For Survival Global competition has compelled management in the extractive industries to improve their worldwide cost position. This is the only means whereby a mining company can differentiate its product and attain a substantial competitive advantage. During the past decade, for example, ASARCO Inc. and Inco Ltd. chopped their payrolls, postponed expansion plans and otherwise retrenched. ASARCO reduced its capital expenditures and cash requirements for operations in 1984 to a level almost equal to its internally generated cash. The company's finances were also strengthened by increasing total lines of credit from outside sources, by selling common stock, and by reducing annual pension funding through a change in actuarial assumptions. Other companies returned to their traditional organizational structure where they had a demonstrated competitive strength. Consolidated Gold Fields, for instance, resumed its operation as a mining finance house. Its capital investment programs are now devoted solely to resource development. In mid-1984, at a time of firming zinc prices, Union Miniere S.A. used the opportunity to integrate its smelting capacity and to direct investment to certain subsidiaries at the expense of less viable operations. Smaller corporations realized that it was not enough just to be the low-cost producer. For example, Drummond Coal Company in Alabama, which dominates its regional market due to its low-costs, has also developed a world-wide trading capability and has placed incremental tonnage from its own mines as well as brokered coal produced by others, thereby minimizing capital risk. In Canada, Campbell Resources has exploited difficult times by acquiring assets cheaply. In the process it improved its capacity to withstand cyclical economic swings by diversifying from solely a copper and gold producer to a company based upon asbestos, coal, copper, gold and natural gas.

Jan 1, 1985

By S. D. Strauss

The marketing of nonferrous metals and of the ores and concentrates from which these metals are recovered is a fascinating trade, international in character, sensitive to every change in the economic tide, and complex in its organization. Each individual metal has its own marketing mechanism; no two are exactly alike. The differences sometimes are a matter of tradition rather than of necessity, but usually they have developed because of the very nature of the problems of producing or consuming the individual metal. This description, because of limitations of space, can do no more than indicate the major aspects of the trade and touch lightly on the marketing structure of each metal. The dictionary states that a market is a "meeting of people for selling and buying." In the case of nonferrous metals this meeting may occur on a half-dozen different occasions between the time the ore has been first mined and the time the refined metal is available for use by industry; or it may not occur at all until after the metal itself has been rolled, drawn, stamped, cast, or forged into a useful semifabricated shape. To illustrate: A Chilean miner may sell his small ore production to a custom mill, which produces concentrates that are sold to an ore dealer, who finances the shipments of the concentrates to a United States custom smelter, which buys these' concentrates for conversion into blister, which is subsequently refined into electrolytic copper and sold. Conversely, much of the production of aluminum is in the hands of integrated concerns that mine bauxite, convert bauxite to alumina, smelt the alumina to produce aluminum, and then fabricate the aluminum into semifinished or even finished products before title to the material changes hands for the first time. Some nonferrous ores are not converted into metal at all but are sold by the miners or dealers directly b the ultimate consumers. A good example would be chrome ores used by the chemical industry. And of course a substantial part of the commerce in nonferrous metals is in scrap, which is the reconversion into useful form of metals that have long since been mined and smelted. Thus, one-third of all the lead used in the United

Jan 1, 1959